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Over the past week, Ethereum (ETH) has fallen 9.3%, falling from $3,630 on January 3 to $3,235 at the time of writing. Although ETH is struggling to defend the important psychological support level at $3,000, some crypto analysts remain convinced that the long-term price of the digital asset is bullish.
Is Ethereum Recovering? Analysts Measure In
While the current crypto bull market has seen Bitcoin (BTC) create multiple new all-time highs (ATH), Ethereum’s price action has remained relatively muted. Notably, ETH’s ATH of $4,878 recorded in November 2021 remains unchanged.
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However, ETH’s subpar price action during the current market cycle has not dampened crypto analysts’ hopes for a bullish reversal. For example, several analysts are closely monitoring the inverse head and shoulders pattern that is forming on the 3-day Ethereum chart.
While a normal head and shoulders pattern is usually bearish, an inverse head and shoulders pattern is considered bullish, indicating a possible reversal in the stock price trend. Commentator MikyBull recently highlighted this formation in a post on X.
Crypto Wolf analyst, confirmed MikyBull’s bullish prediction. In their analysis, Wolf highlighted that a successful completion of an inverse head and shoulders pattern could propel ETH as high as $7,200.
Seasoned cryptocurrency analyst Ali Martinez added that a drop to $2,900 would be “very bullish for Ethereum,” creating a good buying opportunity before ETH climbs to new ATHs. Martinez also noted that if ETH continues to follow its corresponding ascending channel, a dip at $2,800 could provide a solid base for the next uptrend.
Meanwhile, cryptocurrency and forex trader Merlijn The Trader identified a bullish Moving Average Convergence Divergence (MACD) signal on Ethereum’s 4-hour chart. This indicates that the momentum may shift from bearish to bullish. According to Merlijn, this momentum shift could push ETH to the $3,700 price level.
Will ETH Hit a New ATH in 2025?
At the time of writing, ETH is trading around 33% below its ATH value. However, the to climb Institutional interest in the digital asset – especially after the US Securities and Exchange Commission (SEC) approved the ETH exchange-traded funds (ETF) facility – could give ETH the boost it needs to the eye The new ATH.
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The latest Steno Research report predicted that ETH is poised to surpass BTC in 2025, assuming prices as high as $8,000. However, not all are sure about bullish 2025 for ETH.
To conclude, Ethereum should start go through A key resistance level is at $4,000 before it can set its sights on achieving new ATHs. At press time, ETH is trading at $3,235, up 0.1% in the last 24 hours.
Featured image from Unsplash, Charts from X and TradingView.com